While often centered on controversial issues like immigration and border security, the US-Mexico relationship is actually deep-rooted, multifaceted, and economically significant to both countries. The US and Mexico share a 2,000 mile border—the most frequently-crossed controlled border in the world— in addition to a rich, unique and involved history that dates back to the 1820s. In most recent times, the nature of this relationship was expanded in 1994, when the North American Free Trade Agreement (NAFTA) came into force, welding their economies together and reinforcing the uniqueness of the US-Mexico partnership.
Since the adoption of NAFTA, the economic relationship between the US and Mexico has been one of growing integration and mutual importance. In 2015, the total bilateral trade (goods and services) between the US and Mexico reached $583.6 billion USD. Accordingly, every minute, more than $1 million USD’s worth of goods and services crosses the US-Mexico border. The US stands as Mexico’s largest trading partner, with Mexican exports to the US totaling $316.4 billion USD in 2015. Mexico, on the other hand, is the US’ third largest trading partner, yet it remains the second largest market for US exports, which totaled $267.2 billion USD in 2015. Today, Mexico is the main export destination for Arizona, California, New Mexico, Texas, and New Hampshire; and it is the second most important export market for another 17 states across the US. Not surprisingly, it is estimated that 6 million US jobs depend on trade with Mexico, or 1 in 24 American jobs. As for bilateral foreign direct investment (FDI), Mexican FDI in the US stood at $17.7 billion in 2014, while US FDI in Mexico topped $107.8 billion USD in 2014. Lastly, Mexico is an important energy supplier to the US, providing roughly 8% of all US petroleum imports in 2015.
The US-Mexico relationship is certainly significant, and commerce with our southern neighbor is undoubtedly important to both national economies, as well as to the livelihood of many on both sides of the border. It is a partnership bound by geography, history, demographics, and economics.
Geovanny Vega
Since the adoption of NAFTA, the economic relationship between the US and Mexico has been one of growing integration and mutual importance. In 2015, the total bilateral trade (goods and services) between the US and Mexico reached $583.6 billion USD. Accordingly, every minute, more than $1 million USD’s worth of goods and services crosses the US-Mexico border. The US stands as Mexico’s largest trading partner, with Mexican exports to the US totaling $316.4 billion USD in 2015. Mexico, on the other hand, is the US’ third largest trading partner, yet it remains the second largest market for US exports, which totaled $267.2 billion USD in 2015. Today, Mexico is the main export destination for Arizona, California, New Mexico, Texas, and New Hampshire; and it is the second most important export market for another 17 states across the US. Not surprisingly, it is estimated that 6 million US jobs depend on trade with Mexico, or 1 in 24 American jobs. As for bilateral foreign direct investment (FDI), Mexican FDI in the US stood at $17.7 billion in 2014, while US FDI in Mexico topped $107.8 billion USD in 2014. Lastly, Mexico is an important energy supplier to the US, providing roughly 8% of all US petroleum imports in 2015.
The US-Mexico relationship is certainly significant, and commerce with our southern neighbor is undoubtedly important to both national economies, as well as to the livelihood of many on both sides of the border. It is a partnership bound by geography, history, demographics, and economics.
Geovanny Vega
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